The Inner Brisbane apartment market has undergone a significant transformation over the past six months. Off the plan sales momentum has softened across the market influencing the results recorded in the September 2016 Quarter.
However, despite overall market sentiment, the Inner Brisbane apartment market still recorded a total of 542 unconditional transactions during the September 2016 quarter, in line with long term, ten year averages. This is a 17% increase from the June quarter’s sales results, but still a shade on September 2015 with a 61% softening through the past 12 months. The weighted average sale price recovered, increasing by 5% over the three month period to $617,297.
As Inner Brisbane adjusts to the next property cycle, Place Advisory expects these levels of transactions to remain consistent in the short term.
Lachlan Walker from Place Advisory has summarised the sales results for the September 2016 quarter in the video update below.
Summary of the September 2016 Quarter
- Inner Brisbane’s off the plan apartment market recorded 542 unconditional transactions over the September 2016 quarter, totalling almost $335 million worth of apartment sales.
- There are currently 71 projects being sold off the plan within the precinct, six of which were released during the September quarter. These projects, which included Gallery House, Chester Apartments, The 28, Aura, The Mews and Oxy, added an additional 755 apartments to the market.
- A weighted average sale price of $617,297 was recorded, an increase of 5% from the June 2016 quarter previously. This is indicative of a slight change in product mix across the market, resulting in higher sale prices.
- The Mews, located in Woolloongabba, was the top performer for the quarter, recording 110 unconditional transactions. Other strong performers include Chester Apartments in Newstead and Gallery House in Hamilton, recording 67 and 55 unconditional transactions respectively.
- Two bedroom apartments accounted for the majority of unconditional transactions, representing 57% of sales for the period. This was followed by one bedroom apartments, accounting for 37% of transactions. Three bedroom apartment sales represented just 4% of transactions, whilst the remaining 2% of total sales were sub-penthouse and penthouse apartments.
- The majority of transactions that occurred during the September quarter were priced between $450,000 and $550,000, representing 27% of sales. This was closely followed by the $550,000 to $650,000 price bracket, accounting for 26% of transactions. A further 22% of total sales occurred within the $350,000 to $450,000 price bracket.
- Once again, the South of the River precinct saw the highest number of off the plan apartment sales, achieving 282 unconditional transactions. The North of the River precinct recorded a further 212 sales, whilst the Brisbane CBD saw just 48 unconditional apartment transactions occur.
Buyers continue to demand value and quality in the Brisbane apartment market. As apartment supply stabilises and demand for well appointed and well located apartments with a high level of amenity strengthens, we will see two very different apartment markets begin to materialise. Higher end owner occupier apartments will separate themselves from the wider market, and although sales will occur at a slower overall rate, this will create a different style of purchaser and end user, adding an extra dimension to the Brisbane market.
Place Advisory expects that Inner Brisbane’s apartment market will remain challenging for some larger scale projects. The market recalibration will create similar sales results as seen through the past six months. It must however be reiterated, that although these levels of sales are considerably lower than volumes recorded 12 months ago, they are in line with the long term ten year average.